Alibaba revenue jumps 56 percent, buys stake in Ant Financial

Alibaba Group, China’s biggest e-commerce company, reported a 56 percent increase in third-quarter revenue, beating analysts’ expectations as the firm shrugged off any concerns about a market slowdown.

The company also said it would buy a 33 percent stake in its payment affiliate Ant Financial in exchange for certain intellectual property rights owned by the e-commerce giant.

The move ends a profit-sharing agreement between the payment and financial services arm that was spun off in 2011, and Alibaba, which was struck in 2014, and may serve as the necessary groundwork for Ant Financial's IPO.

Revenue for the October-December period rose to 83.03 billion yuan or 13.19 billion US dollars, up from 53.25 billion yuan a year earlier.

Alibaba saw its shares nearly double last year on the back of strong sales and is currently valued at 523 billion US dollars, but is now looking to fend off a growing challenge from rivals in its key retail business that analysts expect will drag on growth.

Revenue from Alibaba’s core commerce business rose 57.3 percent. The company typically reports higher revenue in the third quarter due to the Singles’ Day sale held on Nov. 11, the world’s biggest sales event.

(REUTERS)